Ranpak Holdings Reports Mixed Q3 and Nine-Month Results, with Revenue Growth Offset by Increased Expenses and Losses

Ranpak Holdings Corp. reported its financial results for the third quarter and nine months ended September 30, 2024, showing notable changes in revenue and profitability compared to the previous fiscal period.

For the third quarter of 2024, Ranpak achieved net revenue of $92.2 million, an increase of $9.4 million or 11.4% from $82.8 million in Q3 2023. This growth was driven by a rise in paper revenue, which reached $71.3 million, up from $64.8 million in the same quarter of the prior year. However, the company reported a loss from operations of $(4.2) million, a significant decline from a profit of $1.6 million in Q3 2023. The net loss for the quarter was $(8.1) million, compared to $(3.3) million in the same period last year.

For the nine months ended September 30, 2024, net revenue totaled $263.9 million, reflecting an increase of $18.0 million or 7.3% from $245.9 million in the same period of 2023. Gross profit also improved, reaching $98.4 million, up from $89.2 million. Despite these gains, the company reported a loss from operations of $(14.2) million, compared to a smaller loss of $(2.9) million in the prior year. The net loss for the nine-month period was $(10.7) million, an improvement from $(17.8) million in 2023.

The company’s EBITDA for Q3 2024 was $12.6 million, down 33.0% from $18.8 million in Q3 2023. For the nine months, EBITDA increased to $57.3 million, a 21.7% rise from $47.1 million in the previous year. Adjusted EBITDA (AEBITDA) for the nine months was $61.1 million, up 17.3% from $52.1 million in 2023.

Ranpak's total assets as of September 30, 2024, were $1,133.3 million, slightly up from $1,122.7 million at the end of 2023. Total liabilities increased to $569.0 million from $550.7 million, while total shareholders’ equity decreased to $564.3 million from $572.0 million. The company reported cash and cash equivalents of $69.5 million, an increase from $52.1 million at the end of September 2023.

Significant operational costs included a rise in selling, general, and administrative expenses (SG&A), which reached $28.8 million in Q3 2024, up 37.8% from $20.9 million in Q3 2023, primarily due to increased stock-based compensation. Interest expenses also rose to $9.3 million, reflecting a 36.8% increase from the previous year.

Ranpak continues to navigate challenges such as inflationary pressures affecting end-users, particularly in the automotive and e-commerce sectors, while also managing its investments in technology and product development.